No, you do not have to pay debt collectors. The consequences to not paying can include the possibility they will sue you, get a judgement and possibly garnish your wages and bank accounts.
Your debt will continue to grow. You'll have to deal with the stress of collection agencies contacting you. Your credit score will take a hit. And you could even be sued and have your wages garnished.
Ignoring or avoiding a debt collector is unlikely to make the debt collector stop contacting you. If you believe you do not owe the debt, you should tell the debt collector. If the debt is yours and you can't afford to pay it, you may be able to decide with the debt collector.
Debt collectors are not permitted to try to publicly shame you into paying money that you may or may not owe. In fact, they're not even allowed to contact you by postcard. They cannot publish the names of people who owe money. They can't even discuss the matter with anyone other than you, your spouse, or your attorney.
The decision to sue often depends on the debt's size (usually a minimum of $1,000), age, and original agreements. Debt collection practices for unpaid credit card balances frequently lead to court cases. If sued and found liable, you may face additional costs through interest and fees.
If you get a summons notifying you that a debt collector is suing you, don't ignore it. If you do, the collector may be able to get a default judgment against you (that is, the court enters judgment in the collector's favor because you didn't respond to defend yourself) and garnish your wages and bank account.
2) What is the 609 loophole? The “609 loophole” is a misconception. Section 609 of the Fair Credit Reporting Act (FCRA) allows consumers to request their credit file information. It does not guarantee the removal of negative items but requires credit bureaus to verify the accuracy of disputed information.
Collection agencies are often willing to work with those who can demonstrate that their financial difficulties are real and that partial payment is better than no payment at all. The most common path to debt forgiveness involves negotiating a settlement amount that's lower than the total debt owed.
Specifically, the rule states that a debt collector cannot: Make more than seven calls within a seven-day period to a consumer regarding a specific debt. Call a consumer within seven days after having a telephone conversation about that debt.
While smaller debts are less likely to result in legal action, there are no guarantees. In many cases, though, debt collectors will prioritize larger debts, as they offer a higher return on the time and legal fees associated with a lawsuit.
Debt collection efforts can be relentless at times, and even debts that seem minor may end up haunting you for years if ignored. Luckily, while debt collectors may never give up on a debt, your responsibility to repay a debt is rarely eternal.
If you are struggling with debt and debt collectors, Farmer & Morris Law, PLLC can help. As soon as you use the 11-word phrase “please cease and desist all calls and contact with me immediately” to stop the harassment, call us for a free consultation about what you can do to resolve your debt problems for good.
If a bill that's reported to debt collection never came to you first, you can file a dispute with the credit bureaus. In your dispute letter, say that you were never notified of the debt.
A 609 letter is a tool you can use to request information about items on your credit report or to challenge incorrect entries. It's named after Section 609 of the Fair Credit Reporting Act (FCRA), a federal law that protects consumers from unfair credit reporting practices.
4) 623 credit dispute letter
A business uses a 623 credit dispute letter when all other attempts to remove dispute information have failed.
A FICO® Score of 609 places you within a population of consumers whose credit may be seen as Fair. Your 609 FICO® Score is lower than the average U.S. credit score. Statistically speaking, 28% of consumers with credit scores in the Fair range are likely to become seriously delinquent in the future.
We can't stress enough that ignoring contacts from a debt collector is never a good idea and could result in the debt collector filing a lawsuit and eventually garnishing wages. Collection agencies have already paid the original creditor for your account and aren't likely to stop contacting you.
Once you notify the debt collector in writing that you dispute the debt, as long as it is within 30 days of receiving a validation notice, the debt collector must stop trying to collect the debt until they've provided you with verification in response to your dispute.
In some cases, you may be able to settle for much less than that 50.7% average. Collectors holding old debts may be willing to settle for 20% or even less. The statute of limitations clock starts from the date the debt first became delinquent.
Most states or jurisdictions have statutes of limitations between three and six years for debts, but some may be longer. This may also vary depending, for instance, on the: Type of debt. State where you live.